Success as a real estate agent for dummies

Success as a
Real Estate Agent
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DUMmIES

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by Dirk Zeller

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Success as a
Real Estate Agent
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DUMmIES

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by Dirk Zeller

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Success as a Real Estate Agent For Dummies®
Published by
Wiley Publishing, Inc.
111 River St.
Hoboken, NJ 07030-5774
www.wiley.com
Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana
Published simultaneously in Canada
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About the Author
Dirk Zeller, who as an agent rose to the top of the real estate field quickly,
has been on a meteoric rise since he began his career in 1990.
Throughout his sales career, Dirk was recognized numerous times as one of
the leading agents in North America. He has been described by industry
insiders as the most successful agent in terms of high production with life
balance. His ability to sell more than 150 homes annually, while only working
Monday through Thursday and taking Friday, Saturday, and Sunday off
weekly, is legendary in the real estate field.

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Dirk turned his selling success into coaching significance through founding
Real Estate Champions. Real Estate Champions is the premier coaching company in the real estate industry with clients worldwide. Dirk’s clients average
more than a $200,000 increase in their income annually. Dirk has created such
revolutionary programs as “Protect Your Commission,” “Stewardship Selling,”
“The Champion Listing Agent,” and “Positioning Yourself as the Expert.”
These programs and others like them have changed the lives of hundreds of
thousands of real estate agents worldwide.

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Dirk is one of the most published authors in the areas of success, life balance,
sales training, and business development in the real estate field. He has more
than 250 published articles to his credit. His weekly Coaches Corner newsletter is read by over 200,000 subscribers each week. His book Your First Year
in Real Estate (Prima Publishing) has sold just shy of 100,000 copies in just a
few years.

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Dirk is also one of the most sought-after speakers in the real estate arena.
He has spoken to agents and managers at the local, regional, national, and
international level for most of the large real estate brands, such as Coldwell
Banker, RE/MAX, Century 21, ERA, and Prudential. He has shared the stage
with such notable speakers as Zig Ziglar, Brian Tracy, and Les Brown.
Besides contributing to the real estate agent community, Dirk and his wife of
16 years, Joan, are very active in their church. They live with their 4-year-old
son, Wesley, and 8-month-old daughter, Annabelle, in Bend, Oregon.


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Dedication
So many people have contributed to my success in life, from my parents to
my two brothers, my mentors and coaches, and now my two children, Wesley
and Annabelle. No one, however, has contributed to my success in the real
estate field more than my wife, Joan. I dedicate this book to her: my supporter,
encourager, coach, role play partner, accountability partner, and best friend.
The success that has been achieved in real estate sales, writing, speaking,
training, and coaching was achieved only through our partnership. We did it
together! Some 16 years later, I’m still amazed at God’s grace in giving me a
wife without compare.

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Author’s Acknowledgments

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Just as a successful business is always a collaborative effort, so is a book.
While I receive the unfair lion’s share of the credit, countless others are
behind the scenes making me look good.

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To Barbara Schenck, who took my experiences, strategies, thoughts, and
techniques and put them into the Dummies format you enjoy, thank you. This
book would not exist without your enduring effort and patience.

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To the team at Real Estate Champions, an incredible group of people who
change people’s lives each day, you are the best. Thank you to our support
staff of Judy Cox and Julie Porfirio whose loyalty all these years means so
much to me and to Luci Hamilton and Mary Stewart whose passion to serve
others is unparalleled. A special thanks to Rachelle Cotton who arduously
read every unreadable handwritten word and typed, corrected, and revised
the whole manuscript while enduring every last-minute induced deadline . . .
Thanks.

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To our coaches and salespeople who really change the lives of everyone they
touch; to our marketing staff of Dan Matejsek and Shaylor Murray; everyone
at Real Estate Champions had a hand in this book.
I also need to thank the team at Wiley. Tracy Boggier, acquisition editor,
Chrissy Guthrie, project editor, Jessica Smith, copy editor, and the Composition Department. You are truly pros at what you do. I also want to thank Ken
Edwards, technical reviewer, as well as my literary agent, Barry Neville, of
The Neville Agency.
Lastly, I must thank my personal clients and our Real Estate Champions
clients. With you constantly challenging us and wanting passionately to
improve, you drive us to work so hard to stay ahead. It would be easy to
become complacent, but you don’t let us. Thanks!

Publisher’s Acknowledgments
We’re proud of this book; please send us your comments through our Dummies online registration
form located at www.dummies.com/register/.
Some of the people who helped bring this book to market include the following:
Acquisitions, Editorial, and
Media Development

Composition Services
Project Coordinator: Jennifer Theriot

Project Editor: Christina Guthrie

Layout and Graphics: Claudia Bell, Karl Brandt,
Carl Byers, Stephanie D. Jumper,
Barbara Moore, Barry Offringa,
Alicia B. South

Acquisitions Editor: Tracy Boggier
Copy Editors: Sarah Faulkner, Jessica Smith
Editorial Program Coordinator: Hanna K. Scott

Proofreaders: John Greenough,
Jessica Kramer, Christy Pingleton,
Techbooks

Technical Editor: Dr. Kenneth W. Edwards
Editorial Assistant: Erin Calligan, Nadine Bell,
David Lutton

Cover Photos: © Jeff Cadge/Getty Images

Special Help
Elizabeth Rea

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Cartoons: Rich Tennant
(www.the5thwave.com)

Indexer: Techbooks

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Editorial Manager: Christine Meloy Beck

Publishing and Editorial for Consumer Dummies

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Diane Graves Steele, Vice President and Publisher, Consumer Dummies
Joyce Pepple, Acquisitions Director, Consumer Dummies

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Kristin A. Cocks, Product Development Director, Consumer Dummies

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Michael Spring, Vice President and Publisher, Travel
Kelly Regan, Editorial Director, Travel
Publishing for Technology Dummies
Andy Cummings, Vice President and Publisher, Dummies Technology/General User

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Composition Services

Gerry Fahey, Vice President of Production Services

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Debbie Stailey, Director of Composition Services


Contents at a Glance
Introduction .................................................................1
Part I: Acquiring the Keys to Real Estate Success ...........7
Chapter 1: Discovering the Skills of a Successful Agent................................................9
Chapter 2: Residential versus Commercial: Deciding Which Type
of Real Estate Is Right for You ......................................................................................21
Chapter 3: Pairing with the Right Agency .....................................................................41
Chapter 4: Researching and Understanding Your Marketplace .................................61

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Part II: Prospecting for Buyers and Sellers ...................73

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Chapter 5: Prospecting Your Way to Listings and Sales ..............................................75
Chapter 6: Mining Gold from Referrals ..........................................................................95
Chapter 7: Winning Business from Expired and FSBO Listings ................................115
Chapter 8: A Time-Tested Prospecting Tool: Planning and Hosting
a Successful Open House ............................................................................................139
Chapter 9: Presenting and Closing Listing Contracts ................................................157

Part III: Developing a Winning Sales Strategy ............183

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Chapter 10: Determining a Home’s Ideal List Price....................................................185
Chapter 11: Getting the House Ready for Showing ....................................................203
Chapter 12: Marketing Yourself and Your Properties Online and in Print ..............221
Chapter 13: Negotiating the Contract and Closing the Deal .....................................245

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Part IV: Running a Successful Real Estate Business ....261
Chapter 14: Staking Your Competitive Position .........................................................263
Chapter 15: Keeping Clients for Life ............................................................................281
Chapter 16: Maximizing Your Time ..............................................................................305

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Part V: The Part of Tens ............................................327
Chapter 17: Ten Must-Haves for a Successful Real Estate Agent .............................329
Chapter 18: Ten Tips for Working with Buyers...........................................................335
Chapter 19: Ten Biggest Mistakes and How to Avoid Them .....................................341
Chapter 20: Ten Web Sites for Real Estate Agents .....................................................347

Index .......................................................................351


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Table of Contents
Introduction ..................................................................1

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About This Book...............................................................................................1
Conventions Used in This Book .....................................................................2
What You’re Not to Read.................................................................................3
Foolish Assumptions .......................................................................................3
How This Book Is Organized...........................................................................3
Part I: Acquiring the Keys to Real Estate Success..............................4
Part II: Prospecting For Buyers and Sellers.........................................4
Part III: Developing a Winning Sales Strategy .....................................4
Part IV: Running a Successful Real Estate Business...........................5
Part V: The Part of Tens.........................................................................5
Icons Used in This Book..................................................................................5
Where to Go from Here....................................................................................6

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Part I: Acquiring the Keys to Real Estate Success ............7

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Chapter 1: Discovering the Skills of a Successful Agent . . . . . . . . . . .9

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Having a Financial Goal .................................................................................10
Acting and Working Like a Top-Level Professional ....................................11
Serving as a fiduciary representative ................................................11
Guiding financial decisions .................................................................13
Avoiding the role of a home inventory access provider .................13
Winning Customers........................................................................................14
Understanding the importance of customer creation
over customer service .....................................................................14
Developing sales ability to win customers .......................................15
Gaining customers no matter the market conditions......................16
Becoming a Listing Agent..............................................................................17
Pathways to Success: Which Will You Take? ..............................................18

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Chapter 2: Residential versus Commercial: Deciding
Which Type of Real Estate Is Right for You . . . . . . . . . . . . . . . . . . . . . . .21
Sizing Up the Differences between Residential and
Commercial Agents ....................................................................................21

Comparing commercial and residential real estate:
It’s apples to oranges .......................................................................22
Weighing advantages and disadvantages..........................................24
Selecting Your Specialty ................................................................................38
Evaluating your risk tolerance............................................................38
Taking the 7-question litmus test .......................................................39


Success as a Real Estate Agent For Dummies
Chapter 3: Pairing with the Right Agency . . . . . . . . . . . . . . . . . . . . . . . .41
Weighing Your Agency Options ....................................................................41
Enthusiasm, coffee, and doughnuts: What makes a good office? ...42
Considering the rules you’ll be playing by .......................................44
Does size really matter?.......................................................................46
Prioritizing your values and expectations ........................................47
Narrowing Your Agency Short List...............................................................48
Do your homework...............................................................................48
12 questions to ask each broker.........................................................50
Making agency comparisons...............................................................53
And the winner is . . . ...........................................................................53
Joining Your New Agency Team ...................................................................54
Building a relationship with your manager.......................................54
Forming partnerships ..........................................................................56

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Chapter 4: Researching and Understanding Your Marketplace . . . . .61

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Three Truths that Rule Every Real Estate Market .....................................62
Acquiring Knowledge about Your Marketplace .........................................63
Collecting marketplace information from key sources ...................63
Analyzing the facts and figures...........................................................66
Compiling a marketplace analysis......................................................69
Projecting trends on the horizon .......................................................70
Putting Your Findings to Work......................................................................71
Sharing your market research to build prospect relationships .....72
Distributing your findings to gain publicity......................................72

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Part II: Prospecting for Buyers and Sellers ....................73
Chapter 5: Prospecting Your Way to Listings and Sales . . . . . . . . . . .75
What Prospecting Is — and Isn’t ..................................................................75
Prospecting for Listings versus Buyers.......................................................77
Prospecting for listings........................................................................77
Prospecting for buyers ........................................................................78
The Four Pillars of Prospecting....................................................................79
1. Set a daily time and place for prospecting....................................79
2. Fight off distractions........................................................................79
3. Follow the plan .................................................................................80
4. Be faithful to yourself and finish what you start..........................81

Putting Prospecting to Work for You ...........................................................82
Targeting prospects .............................................................................82
Setting and achieving prospecting goals...........................................83
Shattering the myths............................................................................85
Finding Safety and Success in Numbers......................................................88
The law of accumulation .....................................................................88
The power of consistency ...................................................................89

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Table of Contents
The never-ending prospecting cycle..................................................89
Tracking daily goals and results.........................................................90
Managing contacts ...............................................................................91
Message in a Bottle: Staying in Touch .........................................................92

Chapter 6: Mining Gold from Referrals . . . . . . . . . . . . . . . . . . . . . . . . . .95

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Referral Truths and Consequences .............................................................95
Building a Referral-Based Clientele..............................................................96
Sources of referrals ..............................................................................96

Constructing a referral database........................................................99
Three golden rules for cultivating referrals ......................................99
Developing Your Referral Strategy.............................................................105
Helping people send you the type of referrals you seek...............106
Setting your goal.................................................................................107
Approaching your referral sources..................................................108
Asking the right questions at the right time ...................................110
Handling the referrals you receive...................................................111
Developing Referral Relationships.............................................................112
Making first-time contact ..................................................................112
Converting referrals into clients or referral sources .....................113

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Chapter 7: Winning Business from Expired and FSBO Listings . . . .115

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Three Reasons to Work Expired and FSBO Listings ................................116
Turning Bad Listings to Good Business:
The ABCs of Expired Listings..................................................................117
Finding expired listings......................................................................117

Treating expired listings as high-probability leads........................118
Engaging an expired listing ...............................................................119
Qualifying expired listings.................................................................122
Calling the seller: What to say and how to say it ...........................123
Entering the For-Sale-By-Owner World......................................................127
Why bother with FSBOs?...................................................................127
Finding FSBO listings .........................................................................128
Converting FSBO listings: The successful agent’s approach ........129
Playing the game of lead follow-up ..................................................135

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Chapter 8: A Time-Tested Prospecting Tool: Planning and
Hosting a Successful Open House . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Why Host an Open House?..........................................................................140
A chance to meet potential clients face to face..............................140
A way to meet the needs of dual-income families..........................142
A means of catering to the do-it-yourselfer’s
home-buying needs ........................................................................142
A high-touch opportunity in a high-tech world..............................143
Setting and Achieving Your Open House Objectives...............................144
Planning Your Open Houses to Gain Maximum Exposure ......................145
Featuring a high-appeal home ..........................................................146
Looking good: Leveraging the power of curb appeal ....................146

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Success as a Real Estate Agent For Dummies
Inviting the neighbors........................................................................148

Don’t skimp: Feature a home in the upper-middle price range....148
Showing the way: Leading prospects to the open house..............149
Being the Host with the Most: Effectively Managing the Open House...150
Doing your homework before prospects arrive .............................150
Wallflower or social butterfly: Meeting and greeting
during the open house ...................................................................153
Securing the deal by following up after the open house...............155

Chapter 9: Presenting and Closing Listing Contracts . . . . . . . . . . . . .157

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Qualifying Your Prospects ..........................................................................158
Why and how to qualify prospects ..................................................158
Checking your prospect’s “DNA”......................................................161
Fundamentals for Presenting Listings to Qualified Prospects ...............164
Know the purpose of your presentation .........................................164
Make your presentation useful and interesting..............................165
Keep it short and sweet.....................................................................166

Focus on four keys to a great delivery ............................................167
Stay in control.....................................................................................170
Giving a Quality Presentation: A Four-Phase Formula ............................171
Getting off to a good start .................................................................171
Setting yourself apart from the real estate agent pack .................172
Presenting prices................................................................................176
Going for the close .............................................................................178
Dealing with Sales Objections ....................................................................178
Delaying objections............................................................................178
Handling objections in four easy steps ...........................................179
Asking for the Order ....................................................................................181
Bringing the Presentation to a Natural Conclusion .................................181

Part III: Developing a Winning Sales Strategy .............183

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Chapter 10: Determining a Home’s Ideal List Price . . . . . . . . . . . . . . .185

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Examining Pricing Approaches ..................................................................185
The ABCs of CMAs .......................................................................................186
Staying current ...................................................................................188
Factors that contribute to a CMA.....................................................188
Creating a CMA ...................................................................................190
CMA mistakes to avoid ......................................................................192

Taking CMA results with a grain of salt ...........................................193
Developing Your Pricing Philosophy .........................................................194
Avoiding overpricing just to please the buyer ...............................195
Steering clear of starting high and reducing later .........................196
Coming in on-the-button....................................................................197
Troubleshooting Advice for Pricing Problems .........................................198
Reducing prices: A five-step formula ...............................................198
Accepting over-priced listings..........................................................201


Table of Contents
Chapter 11: Getting the House Ready for Showing . . . . . . . . . . . . . . .203

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Advising Different Kinds of Sellers.............................................................203
Mr. Fix-It ...............................................................................................204
The gung-ho renovator ......................................................................204
Stuck in the ’60s..................................................................................205
The couch potato ...............................................................................205
The calculator.....................................................................................206
Counseling Clients on Home Improvements ............................................206
Improvements that contribute to the sales price ..........................207
Improvements to skip ........................................................................209
Passing the Curb Appeal Test.....................................................................210
Landscaping ........................................................................................210
Exterior paint condition and color...................................................211
Prepping the Interior of the Home .............................................................212

Staging a home....................................................................................213
House clean-up checklist...................................................................217
Final Ways to Make a Great First Impression............................................218
Enhancing the first glance.................................................................219
Helping the buyer “move in”.............................................................220

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Chapter 12: Marketing Yourself and
Your Properties Online and in Print . . . . . . . . . . . . . . . . . . . . . . . . . . . .221

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Targeting Your Marketing Message............................................................222
Defining your target audience...........................................................222
Positioning your offering...................................................................224
Creating and Placing High-Impact Ads ......................................................227
The power of a great headline ..........................................................227
Writing high-impact advertising copy .............................................228
Choosing the right media outlets.....................................................230

Converting ad interest to action.......................................................231
Promoting Properties by Using Flyers ......................................................232
Creating outside-the-home flyers .....................................................232
Creating inside-the-home flyers........................................................233
Design and production tips...............................................................233
Spreading the Word Online .........................................................................234
Types of agent Web sites ...................................................................234
Attributes of a good site ....................................................................235
Creating domain names .....................................................................236
Driving traffic to your site .................................................................237
Converting lookers to leads ..............................................................237
Converting leads to clients ...............................................................238
Using Realtor.com ..............................................................................238
Putting your agency’s Web site to work ..........................................239
Enhancing Exposure via Virtual Tours ......................................................239
Producing a virtual tour ....................................................................240
Leading prospects to your virtual tour ...........................................242
A Picture’s Worth a Thousand Words........................................................242
Choosing your camera.......................................................................242
Taking digital photos .........................................................................243

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Success as a Real Estate Agent For Dummies
Chapter 13: Negotiating the Contract and Closing the Deal . . . . . . .245

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Informing Clients (and Yourself) of What Happens Next ........................246
Keys to Representing a Seller .....................................................................247
Be prepared.........................................................................................247
Protect the seller at all times ............................................................248
Keys to Representing a Buyer ....................................................................249
Partnering with the Other Agent................................................................250
Advancing or Accepting an Offer ...............................................................251
Presenting a buyer’s low offer ..........................................................252
Receiving a buyer’s low offer ............................................................253
Taking the insult out of an insulting offer .......................................254
Getting beyond emotion....................................................................254
Turning concessions into victories..................................................255
Dealing with I win/you lose clients ..................................................256
Working with a Closing Team .....................................................................257
The loan officer...................................................................................257
The home inspector...........................................................................258
The appraiser......................................................................................258
The escrow closer ..............................................................................258
Avoiding Derailment ....................................................................................259

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Part IV: Running a Successful Real Estate Business .....261
Chapter 14: Staking Your Competitive Position . . . . . . . . . . . . . . . . . .263

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Competitive Positioning Defined................................................................263
Calculating and Analyzing Real Estate’s Big Three Statistics.................265
Average list price to sales price .......................................................265
Average days on the market .............................................................267
Average listings taken versus listings sold .....................................269
Interpreting the Findings.............................................................................271
Finding your edge...............................................................................271
Positioning yourself against other agents.......................................272
Using market-area statistics to set your goals................................274
Increasing Your Slice of the Market ...........................................................275
How to calculate market share .........................................................275
How to increase market penetration ...............................................276
How to achieve market dominance..................................................277
Conveying Your Competitive Advantage in Prospect Presentations ....278
Defining your unique competitive position ....................................279
Proving your excellence: You don’t get paid for second place ....280

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Chapter 15: Keeping Clients for Life . . . . . . . . . . . . . . . . . . . . . . . . . . . .281
Achieving Relationship Excellence ............................................................282
Defining your service standards ......................................................284
Promising, and then flawlessly delivering.......................................285

Viewing the closing as a starting point, not a finish line...............286


Table of Contents
Creating After-the-Sale Service...................................................................287
Laying the groundwork during the transaction period .................288
Setting a service agenda for the first 30 days after the sale .........289
Establishing an ongoing communication strategy .........................292
Customizing your messages .............................................................298
Establishing Awesome Service ...................................................................299
Ensuring positive service encounters .............................................299
Developing a service plan .................................................................301

Chapter 16: Maximizing Your Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . .305

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Spending Less Time to Accomplish More.................................................305
Applying Pareto’s Principle: The 80:20 Rule .............................................307

Making time for the things that impact your success ...................307
Weighting your time to what matters ..............................................309
Dealing with time-consuming fires ...................................................312
Time Blocking Your Way to Success ..........................................................313
Setting your schedule in time blocks...............................................313
Time-blocking mistakes to block out ...............................................317
Killing the Time Killer Called Procrastination ..........................................319
Moving forward with a clear vision .................................................320
Knowing your objectives...................................................................320
Setting your priorities........................................................................321
Giving yourself deadlines and rewards ...........................................322
Carpe Diem: Seize Your Day........................................................................324
Stop wasting time ...............................................................................324
Stop letting others waste your time.................................................324
Manage constant interruptions ........................................................325
Keep phone calls short......................................................................325
Use your car to gain efficiency and career advancement .............326

Part V: The Part of Tens .............................................327

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Chapter 17: Ten Must-Haves for a Successful Real Estate Agent . . .329
A Good Contact Management System .......................................................329
A Real Estate Calculator ..............................................................................330
Professional Attire .......................................................................................330
Personal Web Site.........................................................................................331

Professional Business Cards and Stationery ............................................331
A Clean, Professional, Reliable Car ............................................................332
A Headset for Your Phone...........................................................................333
A Number-Based Business Plan .................................................................333
Sales Scripts..................................................................................................334
Support System ............................................................................................334

Chapter 18: Ten Tips for Working with Buyers . . . . . . . . . . . . . . . . . . .335
Qualify Your Prospects................................................................................335
Work Only with Committed Clients ...........................................................336

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Success as a Real Estate Agent For Dummies
Don’t Assume the Buyer Is Exclusively Committed to You ....................336
Ask For and Win an Appointment ..............................................................337
Be Ready to Counter Typical Buyer Misconceptions..............................337
Explain the Services You Provide ..............................................................338
Develop a Partnership with a Lender........................................................339
Ask Buyer Prospects Plenty of Questions.................................................339
Take Control..................................................................................................339
It’s Okay to Say No .......................................................................................340

Chapter 19: Ten Biggest Mistakes and How to Avoid Them . . . . . . .341

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Failing to Build Your Real Estate Practice as a Business ........................341
Poor Financial Management .......................................................................342
Not Buying Enough of What You Sell .........................................................343
Poor Use of Time ..........................................................................................344
Not Investing in Your Most Important Business Asset: Yourself! ..........344
Making Yourself Available to Prospects and Clients 24-7 .......................344
Failing to Communicate Frequently...........................................................345
Being Inconsistent........................................................................................345
Ignoring the Fundamentals .........................................................................346
Talking Too Much, Listening Too Little, and Then Going Silent.............346

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Chapter 20: Ten Web Sites for Real Estate Agents . . . . . . . . . . . . . . .347

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RealEstateChampions.com .........................................................................347
REALTOR.com...............................................................................................347
RealEstateWebsiteSEO.com ........................................................................348
Inman.com.....................................................................................................348
RealEstateSchoolOfChampions.com .........................................................348
RECyber.com.................................................................................................349
RealtyTimes.com..........................................................................................349
RealtyU.com..................................................................................................349

IRED.com .......................................................................................................350
DirkRecommends.com ................................................................................350

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Index........................................................................351

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Introduction

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elcome! You’re about to move into the league of the most successful
real estate agents.

Al

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Real estate sales is the greatest business in the world. In my more than 20
years as a business owner and entrepreneur, I’ve yet to find a business equal
to real estate sales when it comes to income potential versus capital investment. In any marketplace, a real estate agent has the opportunity to create
hundreds of thousands of dollars in income. (I coach many agents who earn

more than one million dollars per year.) An agent’s income is especially significant when viewed against the capital investment required by the business.
Most agents need as little as $2,000 to start up their practices. Compare that
to any other business and you’ll find that most involve sizeable investments
and burdensome loans to buy equipment, lease space, create marketing
pieces, develop business strategies, and hire employees — all to achieve
what is usually a smaller net profit than what a real estate agent can achieve
in the first few years. It’s almost too good to be true!

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Real estate sales paved the way for me to become a millionaire at a very
young age. It has provided a solid income, many investment opportunities, an
exciting lifestyle, and a platform from which I’ve been able to help many
others achieve their own goals and dreams in life.

About This Book

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This book is about becoming a successful real estate agent, for sure. It’s also
about acquiring sales skills, marketing skills, time-management skills, people
skills, and business skills. It’s about gaining more respect, achieving more

recognition, making more money, and closing more sales. It’s a guide that
helps you achieve the goals and dreams that you have for yourself and your
family.
I’m delighted to share with you the keys I’ve found for real estate success and
to allow you to learn from the mistakes I’ve made along the way. (I’m a firm
believer in the idea that we often learn more from failures than successes,
but that doesn’t mean you have to repeat my failures.)


Success as a Real Estate Agent For Dummies
The techniques, skills, and strategies I present throughout this book are the
same ones I’ve used and tested to perfection personally and with thousands
of coaching clients and hundreds of thousands of training program participants. This book is not a book of theory but of “real stuff” that works and is
laid out in a hands-on, step-by-step format. You can also find time-tested
scripts in most sales-oriented chapters. The scripts are designed to move
prospects and clients to do more business with you. (If you’re a junior
member of the grammar police, you may find that some don’t perfectly align
with your expectation of the English language. The objective of sales scripts,
though, is not perfect sentence structure but rather maximum persuasion of
the prospect or client.)

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If you apply the information contained in this book with the right attitude,
and if you’re consistent in your practices and in your success expectations,
your success in real estate sales is guaranteed.

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Conventions Used in This Book

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Throughout this book I’ve incorporated a number of style conventions, most
aimed at keeping the book easy to read and a few aimed at keeping it legally
accurate:

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ߜ Throughout this book, I use the term real estate agent rather than Realtor
unless I’m talking specifically about members of the National Association
of Realtors (NAR). Realtor is a registered trademark owned by the NAR,
which requires that the term appear either in all capital letters or with
an initial capital R. For your information, all Realtors are real estate
agents, but only those real estate agents who are members of and subscribe to the Association’s strict code of ethics are Realtors.
ߜ The word agency describes the relationship that a real estate agent has
with members of the public, or as they’re sometimes called, clients. When
clients list a home for sale, they enter a contractual relationship with the
agent who will represent their interests. That agreement is called an
agency relationship. Every state and province has a unique set of laws
stipulating how consumers and real estate agents work in an agency relationship. These agency laws have been reworked and clarified over the
past decade. In earlier days, agents didn’t formally represent homebuyers. Instead, agents were obligated solely to the sellers, for whom they
worked basically as sub-agents. That’s all ancient history, though, and
throughout this book when I refer to agency agreements, I’m describing
the real estate agent’s relationship with buyers or sellers, depending

upon whether the agent is the listing agent or the selling agent.

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ߜ Bulleted and numbered lists present important information in a quickskim format. Watch for lists marked by numbers or checkmarks. They
contain essential facts, steps to take, or advice to follow.


Introduction
ߜ Whenever I introduce a new term, I italicize it and follow it up with a
brief definition.
ߜ Web sites and e-mail addresses appear in monofont to make them stand
out on the page.

What You’re Not to Read

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Foolish Assumptions

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Personally, I think you should read every word of this book. (I wrote it, after
all!) However, if you’re the bare-bones info type, you can skip the sidebars
that appear throughout the book. You know when you come upon a sidebar
because it appears in a gray box. The sidebars contain interesting, often

anecdotal, information that’s related to the topic but not essential to understanding it.

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As I compressed a career’s worth of real estate experience and coaching
advice into these pages, I had to make the following assumptions about you,
the reader:

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ߜ You’re already a licensed real estate agent. If you haven’t yet taken the
real estate license exam, consider the book Real Estate License Exams
For Dummies by John A. Yoegel (Wiley).

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ߜ You’re looking to rev up your real estate business, whether you’re just
starting out or have been in the business for a while. Some of you may
be deciding whether to specialize in commercial or residential real
estate and may be considering which real estate company to join.
Others have already launched careers, hung licenses with good companies, and are now looking for advice on how to climb the success curve
faster and higher. Still others are interested in refining specific skills,

such as prospecting, selling, running their businesses more efficiently, or
building customer loyalty.

How This Book Is Organized
Each of the five parts of this book deals with a different aspect of your real
estate career: making fundamental career decisions, attracting clients, closing sales, building a strong business, and tapping into the best resources and
advice available.

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Success as a Real Estate Agent For Dummies
Every part of the book is a self-standing component. You can scan the table
of contents and flip directly to the chapter or section that addresses your
interests, or you can search the index and go straight to specific pages that
answer your questions. I think you can benefit the very most by reading the
entire book, but you don’t have to read it sequentially from cover-to-cover to
make sense of the contents.

Part I: Acquiring the Keys
to Real Estate Success

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The four chapters in this first part pave the way for your real estate success.
The first chapter provides an overview of the skills you need, gives advice

for acquiring expertise, and shows what steps to take to swing the odds for
success your way. The second chapter helps you understand and decide
between residential and commercial specialties. Chapter 3 guides you
through the process of evaluating, choosing, and joining a real estate company. And Chapter 4 helps you research and understand the marketplace in
which you are working.

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Part II: Prospecting For Buyers and Sellers

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This five-chapter part unlocks the secrets of client development. It starts
with a chapter dedicated to how, when, and why to prospect. Following chapters focus on how to mine gold from referrals, how to win business from
expired and FSBO listings, how to use open houses as the ultimate prospecting approach and, finally, how to convert all that prospecting effort to sales
action by perfecting your skills at presenting and closing contracts.

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Part III: Developing a Winning
Sales Strategy

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This part is all about sales. It begins with a chapter that helps you establish a
home’s ideal sales price based on current market conditions, your own pricing philosophy, and what I call my magic marketing formula. The next chapter is about getting the house ready to show. It’s followed by an essential
chapter on how to market properties online and in print. The part ends with
an important chapter on how to negotiate contracts and close deals.


Introduction

Part IV: Running a Successful
Real Estate Business

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In this part, I go into coaching mode and help you position yourself for success. The first of the three chapters in this part gives you tools, systems,
strategies and techniques to understand your marketplace and define where
you stand in it, and stake your own competitive position. In the second chapter, I share advice for building client relationships, developing client loyalty,
delivering unbeatable service, and winning client relationships that last a lifetime. This part ends with an invaluable chapter that is packed full of how-to
techniques and advice for generating the greatest return on the time you
invest in your real estate career.

Part V: The Part of Tens

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This final part sends you off with four fast ten-part lists. Chapter 17 presents
ten tools that are essential for any real estate agent’s success. Chapter 18 is a

round up of top ten tips for working with buyers. Chapter 19 tells you how to
avoid the ten big real estate sales mistakes. Finally, Chapter 20 closes the book
with ten great Web sites to click on for a wealth of additional information.

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Icons Used in This Book
This wouldn’t be a For Dummies book without the handy symbols that sit in
the outer margin to alert you to valuable information and advice. Watch for
these icons:

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Why reinvent the wheel? Whenever I present a true story or a lesson that I’ve
learned from first-hand experience, this icon flags the paragraph so you can
benefit from the recollection.

When you see this icon, highlight the accompanying information. Jot it down,
etch it in your memory, and consider it essential to your success.

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Success as a Real Estate Agent For Dummies

The bull’s-eye marks on-target advice and tried-and-true approaches that
save time, money, and trouble as you achieve real estate success.

When there’s a danger to avoid or just a bad idea to steer clear of, this icon
sits in the margin issuing a warning sign.

Where to Go from Here

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The beauty of this book is that you can start wherever makes most sense
for you.

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If you’re a newcomer to the field of real estate sales, I suggest you start with
Part I, in which I’ve consolidated all the start-up information that you’re likely
to be looking for.

Al

If you’ve been in the trenches for a while and simply aren’t having as much
success as you’d like, start with Chapter 5 and go from there.

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If you’re time-pressed, facing a crucial issue, or grappling with a particular
problem or question, turn to the table of contents or index to find exactly the
advice you’re seeking.

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Wherever you start, get out a pad of yellow sticky notes or a highlighter pen
and get ready to make this book — and all the information it contains — your
own key to success. I send you off with my very best wishes!

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Part I

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Acquiring the Keys
to Real Estate
Success